Program Operations Manual System (POMS)

With respect to U.S. Social Security taxes, the agreement only applies to taxes under
the RSDHI program (i.e., FICA for employees and employers and SECA for self-employed
persons, including that portion related to HI). It does not affect any taxes related
to other programs such as Workers' Compensation or Unemployment Insurance. Thus, if
an individual is exempt from U.S. Social Security coverage under this agreement, neither
the employee nor employer share of the FICA tax, or SECA tax in the case of a self-employed
person, is required to be paid.

For Sweden, the agreement applies to social security taxes which finance old-age,
survivors and disability benefits under Sweden's “basic” and “supplementary” pension programs (see GN 01717.020 for a description of these programs.) The agreement does not affect tax liability
under other Swedish programs such as health insurance, work accident and occupational
illness insurance or the family allowance benefit program. Consequently, if a worker
is exempt from Swedish social security coverage as a result of the agreement, no contributions
are due under the Swedish old-age, survivors and disability benefit programs, but
the tax exemption does not extend to the normal contributions payable under other
Swedish programs.